5. Which of the following statements is true about the prices of primary commodities?

A. Primary commodity prices tend to fluctuate dramatically over time.

B. Primary commodity prices had gone up significantly in all categories from 1972 to 2017.

C. Among all primary commodities, petroleum experienced the largest increase in price from 1972 to 2017.

D. All of the above

6. Which of the following factors contribute to the inelastic and unstable demand of developing nations' primary exports?

A. Households in developed nations spend only a small proportion of their income on agricultural commodities.

B. There are few substitutes for minerals.

C. Business cycle fluctuations in developed nations.

D. All of the above

7. Which of the following is a basic type of international commodity agreements?

A. Buffer stocks

B. Export controls

C. Purchase contracts

D. All of the above

8. Compared to the export-oriented industrialization, the import substitution industrialization policy has often resulted in a ___.

A. Higher level of openness

B. Lower price for domestic consumers

C. Increase in export earnings for the traditional sectors

D. Lower rate of economic growth in the long run

Answer: Page:304-305 & lecture notes

9. Which of the following is not a characteristic of the HPAE?

A. Low rates of inflation

B. Export-oriented industrialization

C. Competitive labor markets

D. Excessive capital intensity and relative little labor absorption

10.Which of the following countries has followed an exported oriented industrialization policy since the1950s?

A. India

B. Korea

C. China

D. Argentina